The first instant cash loan can sort out many a problem, that’s what they’re there for. To tide you over with a bit of cash, especially in month’s like January where you may have been paid early or had extreme outgoings the previous month or even both.
But what is key to not getting in the same boat the very next month is to set a repayment factor that your budget can accomodate.
As short term loans become more popular, and more available, there is gathering evidence that suggests individuals are simply not doing just this. And what’s the next temptation, when you’ve over-stretched yourself? To get yet another payday advance or quick loan to cover the mounting debt.
Sure, that’s fine if you know that you’ve got a lump sum like a bonus on the way but, all too often if you’re not careful, this habit of acquiring short term loans can soon see you struggling to pay at least one, if not more, of the debts you’ve suddenly started to incur.
Is the economy suited to multiple short term loans?
Back in the day, there was only one way your salary was going to go, and that was upwards to at least match inflation or, if you were lucky or had pushed yourself, move up to a milestone raise, as and when it came around to appraisal time at the end of the financial year.
However, as businesses in the UK budget for 2012 and beyond, there seems to be no respite on the economic horizon. Confidence is low, pay freezes are all too common and, in some instances, firms are asking their employees to take pay cuts.
It certainly can make sense to take out an instant cash loan if the amount repayable is less than you would otherwise be charged by your bank for entering unauthorised overdraft limits but, before you enter into multiple agreements, it is worth considering your ability to repay, before you set your monthly repayment amount.
The onus to do this is entirely upon your shoulders, especially as there are loan companies who do not check your bad credit rating and issue sameday loans on the basis that you can prove your income based on history.
Consolidation short term loans
Industry watchdogs have already pre-empted this happening and, to some extent, have granted some of the higher rated loan companies the ability to offer consolidation short term loans, which take all of your existing short-term commitments and group them all together, in the hope that this will cut down on the monthly outgoings of individuals who find themselves in this situation in an attempt to make them solvent again. More on this topic in the next article, (7/1/12), ‘All is not lost’.